CEO slashes his pay to give his employees a $70,000 minimum wage

Dan Price, the chief executive of Seattle-based firm Gravity Payments, has taken a huge pay cut to implement a company-wide minimum wage of $70,000 (£47,000).

Price made the shock move after reading an article on how income can affect happiness - and he decided to do something about it.

"I really do view everything I do as a responsibility," the young entrepreneur told NBC's Today show.

"Seeing growing inequality and how it's harder to just make ends meet and live the normal American dream ... and the wages just aren't keeping up."

"It's not about making money, it's about making a difference," he added.

Price gathered his employees for a meeting earlier this week to break the news.

"So, we have a really exciting situation," he said. "We're going to have a minimum $70,000 pay rate for everyone that works here".

His announcement was met with gasps as the news slowly sank in, but after their initial shock the room erupted into applause.

One employee who is a single mother told NBC's Today show, "I have this goal of being a 20-year-old home owner, and I'm going to reach that now".

Price, who was named Entrepreneur Magazines 2014 Entrepreneur of the Year, said the move will cut his companys profits almost in half for now, and that is why he slashed his own million dollar pay cheque to $70,000.

"You know I want to be part of the solution to inequality in this country," Price said.

"And if corporate America also wants to be part of the solution that would make me happy. What matters to me is that the problem gets solved."